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Zhejiang Guocheng takes control of Jianxin Mining
Posted on Tuesday, 13 February 2018 14:22
Zhejiang Guocheng Holding is acquiring a significant stake in Jianxin Mining for CNY 6.56 billion (USD 1.04 billion) as part of the bankruptcy reorganisation of the Jianxin Group.
The company, formed last year as a platform to carry out the restructuring, has made a tender offer to acquire a total of 671.16 million shares representing a 59.0 per cent holding in the non-ferrous metal explorer.
Beijing Saide Wanfang Investment and Beijing Zhishang Maihe Investment are each handing over their 26.5 per cent and 6.5 per cent interests, respectively.
The offer of CNY 9.77 is a slight discount to Jianxin Mining’s stock price of CNY 10.95 when its shares were suspend in September, though they resumed trading on 7th February.
At the time, the group said it is looking into developing sepiolite resources in partnership with a state-owned enterprise funded by Xiangtan city.
Jianxin Mining is focused on non-ferrous, ferrous and rare metals, and mineral resources, such as coal mining, flotation and smelting, and its products include zinc concentrate, lead concentrate and zinc ingots.
In the three months ended 30th September 2017, the group generated net profit attributable to shareholders of CNY 114.00 million on revenue of CNY 289.00 million.
Zinc has good resistance to corrosion and is widely used in metallurgy, building materials, mechanical and electrical, chemical and the automotive sectors.
In terms of lead, the biggest application is to make lead acid batteries while copper is distributed in the electrical and electronics industries, as well as construction and defence, among others.
Companies operating in the metal and metal products sector have announced 202 mergers and acquisitions so far this calendar year, according to Zephyr, the M&A database published by Bureau van Dijk.
At the moment, Jianxin Mining is currently the largest by value, followed by a minority stake deal featuring China Hongqiao (USD 798.16 million).
© Zephus Ltd